Glossary / Definitions
Our complete Stock Market Glossary is an essential resource for anyone looking to improve their knowledge in the space. We understand that the stock market can be a complex landscape, so we’ve put together a comprehensive list of commonly used terms and their definitions. This compilation is designed to provide clarity and ease of understanding to investors, regardless of their level of expertise.
A technical indicator that measures the cumulative flow of money into a security over time, taking into account both price and volume changes. An upward-sloping accumulation line indicates strong buying pressure, while a downward-sloping line suggests selling pressure.
Securities trading that occurs after the regular market hours, typically through electronic communication networks (ECNs).
American Depository Receipt (ADR)
A negotiable certificate issued by a US bank representing a specified number of shares in a foreign stock traded on a US exchange.
A financial professional who evaluates and provides recommendations on securities, industries, or companies.
A document produced by a publicly-traded company that provides a comprehensive overview of its financial performance and activities during the previous year.
The practice of simultaneously buying and selling securities, currencies, or commodities in different markets to profit from price discrepancies.
Artificial Intelligence (AI)
The use of computer algorithms and machine learning techniques to perform tasks that typically require human intelligence, such as language translation, image recognition, and decision-making.
A bullish chart pattern formed by a horizontal resistance line and an upward-sloping support line, indicating a potential breakout to the upside as the price approaches the apex of the triangle.
The lowest price a seller is willing to accept for a security.
The process of analysing the chemical composition of a mineral sample to determine its mineral content and quality.
The process of diversifying investments among different asset classes (such as stocks, bonds, and cash) to manage risk and achieve investment goals.
ASX stands for the Australian Securities Exchange, which is the primary stock exchange in Australia and one of the largest exchanges in the Asia-Pacific region.
An option that has a strike price equal to the current market price of the underlying security.
The maximum number of shares a company is legally allowed to issue, as stated in its articles of incorporation.
Average Daily Trading Volume (ADTV)
The average number of shares traded per day over a specified period – often used as a liquidity indicator.
Average True Range (ATR)
A volatility indicator that measures the average range between a security’s high and low prices over a specified period, used to gauge market volatility and set stop-loss orders.
A method of testing a trading strategy by applying it to historical price data to assess its performance and effectiveness. Backtesting helps traders refine their strategies, identify potential issues or weaknesses, and gain confidence in their approach before applying it to live markets.
A financial statement that summarises a company’s assets, liabilities, and shareholders’ equity at a specific point in time.
Barrel of Oil Equivalent (BOE)
A unit of measurement that is used to compare the energy content of different fuels, such as oil and gas. One BOE is equal to the energy content of one barrel of crude oil.
A market characterised by falling prices and investor pessimism.
A bond that does not have the owner’s name registered with the issuer and is presumed to be owned by the person who possesses it.
The highest price a buyer is willing to pay for a security.
The difference between the highest bid price and the lowest ask price for a security.
The large volumes of data that are generated by various sources, such as social media, internet traffic, and sensors.
Medications that are highly similar to biologic drugs that have already been approved by the FDA. Biosimilars are often less expensive than their brand-name counterparts and are becoming more prevalent in the marketplace.
A drug that generates annual sales of $1 billion or more for its manufacturer. Blockbuster drugs are often the result of successful research and development efforts and can be a major source of revenue for a company.
A digital ledger technology that allows for secure and transparent transactions without the need for a centralised intermediary.
Blue Chip Stocks
Shares of well-established companies with a history of stable earnings and dividends.
A volatility indicator consisting of a moving average and two standard deviation bands above and below it, used to identify potential overbought or oversold conditions.
A debt security issued by a corporation or government, which pays periodic interest and returns the principal at maturity.
The net asset value of a company, calculated as total assets minus intangible assets and liabilities.
A technical event that occurs when a security’s price gaps significantly away from a chart pattern, support or resistance level, or other significant price area, typically accompanied by a sharp increase in trading volume. Breakaway gaps often signal the start of a new trend or a strong continuation of an existing trend, as they indicate strong buying or selling pressure and a potential change in market sentiment.
A technical event in which a security’s price moves above a resistance level or below a support level, often accompanied by increased volume. Breakouts can signal the beginning of a new trend or the continuation of an existing trend.
A market characterised by rising prices and investor optimism.
The repurchase of shares by a company, reducing the number of outstanding shares and potentially increasing the value of remaining shares.
A financial contract that gives the buyer the right, but not the obligation, to buy a security at a specified price within a specific time period.
A type of financial chart used to represent the price movement of a security, which displays the open, high, low, and closing prices for a specific period.
The profit made from the sale of a security or investment when the selling price exceeds the purchase price.
The net amount of cash and cash equivalents moving into and out of a business over a specific period.
A momentum indicator that measures the Accumulation/Distribution Line with two exponential moving averages, used to generate buy and sell signals based on divergences with the security’s price.
A distinct price formation on a security’s price chart that is used by technical analysts to predict future price movements. Common chart patterns include triangles, flags, head and shoulders, and double tops or bottoms.
An individual who uses technical analysis to predict future price movements based on historical market data, such as price and volume.
A specific measure used to evaluate the effectiveness of a new drug or treatment in a clinical trial. Clinical endpoints can include measures such as disease progression, symptom relief, or survival rates.
Research studies conducted to evaluate the safety and efficacy of new drugs or treatments.
The use of remote servers and internet technology to store, manage, and process data.
Basic goods used in commerce, such as metals, agricultural products, and energy resources, that are interchangeable with other goods of the same type.
A type of security that represents ownership in a corporation, with each share entitling the holder to a portion of the company’s profits and voting rights.
A program that allows seriously ill patients to access experimental drugs or treatments that are still in development. Compassionate use is typically reserved for patients who have exhausted all other treatment options.
A technical analysis concept that refers to the alignment of multiple support or resistance levels, indicators, or chart patterns at a specific price point or range. The presence of confluence increases the likelihood of a significant price reaction, making it a critical consideration when identifying potential trade entry and exit points.
Products and services that people generally buy when they have discretionary income, or money left over after paying for basic needs. Consumer discretionary products and services include items such as clothing, electronics, automobiles, travel, and entertainment.
Products that people use on a daily basis and consider necessary, regardless of the economic climate. Consumer staples include products such as food, beverages, household and personal care items, and tobacco.
A technical event that occurs when a security’s price gaps in the direction of an existing trend, reinforcing the strength of the trend. Continuation gaps are usually accompanied by increased trading volume and are considered a confirmation of the ongoing trend.
A debt security that can be converted into a predetermined amount of the issuer’s common stock at certain times during its life.
The original value of an asset for tax purposes, usually the purchase price, adjusted for factors such as dividends, stock splits, and new capital investments.
An options strategy in which an investor holds a long position in an asset and sells call options on that same asset to generate income.
An assessment of the creditworthiness of a borrower, typically expressed as a letter grade assigned by a credit rating agency.
A naturally occurring liquid that is extracted from underground reservoirs and is refined into various petroleum products, such as gasoline, diesel, and jet fuel.
Cup and Handle
A bullish chart pattern resembling a tea cup, consisting of a rounded “cup” followed by a small consolidation “handle,” indicating a potential upward price breakout.
The minimum grade of mineralisation that must be present in a deposit in order for it to be economically viable to mine.
The practice of protecting computer systems and networks from unauthorised access, theft, and damage.
A trading strategy in which a trader buys and sells securities within a single trading day, with the goal of profiting from short-term price movements. Day traders typically use technical analysis and real-time market data to make quick decisions and execute numerous trades, closing all positions before the end of the trading day.
Dead Cat Bounce
A temporary recovery in a security’s price after a significant decline, often followed by a continuation of the downtrend.
A bearish technical event in which a security’s short-term moving average, typically the 50-day moving average, crosses below its long-term moving average, typically the 200-day moving average. The Death Cross is considered a sell signal and may indicate the start of a new downtrend.
A financial ratio that measures the proportion of a company’s debt relative to its equity, used to assess a company’s financial leverage.
A stock of a company that is less sensitive to economic downturns and tends to perform well during periods of market volatility, such as utility or consumer staples stocks.
A financial instrument whose value is derived from an underlying asset, such as stocks, bonds, commodities, or currencies.
A bearish chart pattern formed by a horizontal support line and a downward-sloping resistance line, indicating a potential breakout to the downside as the price approaches the apex of the triangle.
The interest rate charged by the US Federal Reserve to commercial banks for loans, which influences other interest rates in the economy.
A new technology that disrupts and displaces existing technologies, products, and markets.
A technical indicator that measures the cumulative flow of money out of a security over time, reflecting both price and volume changes. An upward-sloping distribution line indicates weakening selling pressure, while a downward-sloping line suggests increasing selling pressure.
A situation in which a security’s price and an indicator, such as a momentum oscillator, move in opposite directions. Divergence can be bullish (price declines while the indicator rises) or bearish (price rises while the indicator declines) and may signal a potential trend reversal.
The strategy of spreading investments across various assets or asset classes to reduce risk.
A portion of a company’s earnings paid to shareholders, usually on a regular basis.
The annual dividend payment per share divided by the stock’s current market price, expressed as a percentage.
Double top and double bottom
Chart patterns that signify a trend reversal, where a security’s price reaches a similar high or low twice before reversing direction.
Dow Jones Industrial Average (DJIA)
A widely followed stock market index composed of 30 large, publicly-owned U.S. companies, often used as a benchmark for the overall health of the stock market.
The part of the oil and gas industry that involves the refining and marketing of petroleum products, such as gasoline, diesel, and jet fuel.
A comprehensive appraisal of a business or investment opportunity to evaluate its merits and potential risks.
A measure of the sensitivity of a bond’s price to changes in interest rates, expressed as the weighted average time until the bond’s cash flows are received.
The buying and selling of goods and services over the internet.
Earnings per Share (EPS)
A company’s net income divided by the number of outstanding shares.
A document released by a publicly-traded company that details its financial performance, including revenue, expenses, and net income, for a specific period, usually a quarter or a year.
A statistic or data point used to gauge the overall health of an economy or specific sectors within it.
Efficient Market Hypothesis (EMH)
A theory that suggests that all publicly available information is already reflected in a security’s price, making it difficult for investors to consistently outperform the market.
Elliot Wave Theory
A form of technical analysis that aims to identify recurring price patterns and trends based on investor psychology and market cycles.
Energy Information Administration (EIA)
A federal agency that collects and analyses data on energy production, consumption, and prices in the United States and around the world.
The sector of the economy that includes companies involved in the exploration, production, processing, and distribution of various energy resources, such as oil, gas, coal, and renewable energy.
Enhanced Oil Recovery (EOR)
A process used to increase the amount of oil that can be extracted from a reservoir by injecting various substances into the reservoir, such as steam or chemicals.
Enterprise Value (EV)
A measure of a company’s total value, calculated as market capitalisation plus debt and preferred stock, minus cash and cash equivalents.
Ownership interest in a company, represented by stocks or other securities.
ESG stands for Environmental, Social, and Governance:
- Environmental: How a company interacts with the natural environment.
- Social: How a company engages with employees, customers, and communities.
- Governance: How a company is governed, including leadership and shareholder rights.
Together, these criteria are used to evaluate a company’s impact on society and the environment, and can influence investment decisions for socially conscious investors.
The first day a stock trades without the right to receive the most recently declared dividend.
Exchange Traded Fund (ETF)
A security that tracks an index, a commodity, or a basket of assets, and is traded on an exchange like a stock.
The act of using the rights provided by an options contract to buy or sell the underlying asset at the specified strike price.
A technical event that occurs when a security’s price gaps sharply in the direction of an existing trend but is followed by a reversal, signalling the end of the trend. Exhaustion gaps are often accompanied by high trading volume and indicate that the market has reached a peak or bottom, with buyer or seller exhaustion setting in.
The last day an options contract is valid, after which it becomes worthless.
The process of searching for new mineral or oil and gas reserves using various geologic and geophysical techniques.
A permit granted by a government agency that allows a company to conduct mineral exploration activities in a specific area.
Exponential Moving Average (EMA)
A type of moving average that assigns more weight to recent data points, making it more responsive to recent price changes. The EMA is used to identify trends, potential support and resistance levels, and generate buy and sell signals.
The nominal value of a bond, also known as the par value, which is the amount the bond issuer must pay back to the bondholder at maturity.
A situation in which a security’s price appears to break through a support or resistance level, but then reverses direction and fails to sustain the breakout. False breakouts can indicate trend exhaustion or trap traders in losing positions, making it important to consider additional confirmation signals before entering a trade.
FDA (Food and Drug Administration)
The United States federal agency that is responsible for regulating the safety and effectiveness of drugs, medical devices, and other health-related products in the country.
Federal Reserve (Fed)
The central banking system of the United States, responsible for implementing monetary policy, regulating banks, and providing financial services to depository institutions.
A technical analysis tool that identifies potential support and resistance levels based on the Fibonacci sequence, often used to predict price reversals.
A formal record of a company’s financial activities, including balance sheets, income statements, and cash flow statements.
A 12-month period used by a company for financial reporting and budgeting purposes, which may or may not coincide with the calendar year.
A type of investment that provides regular, predetermined interest payments, such as bonds and preferred stocks.
A continuation chart pattern characterised by a rectangular-shaped consolidation that forms after a strong price movement, typically sloping against the previous trend, signalling a brief pause before the trend continues in the direction of the prior move.
The total number of a company’s shares that are publicly owned and available for trading.
A non-standardised contract between two parties to buy or sell an asset at a specified future date and price, often used to hedge against currency and commodity price fluctuations.
A process used to extract natural gas or oil from shale rock formations by injecting a mixture of water, sand, and chemicals into the rock at high pressure.
Additional non-wage compensation provided to employees in addition to their normal wages or salaries, such as health insurance, retirement plans, and paid time off.
A method of evaluating a security by analysing the financial health of a company, industry conditions, and broader economic factors.
A legal agreement to buy or sell a specific commodity or financial instrument at a predetermined price on a specified future date.
A technical event that occurs when a security’s opening price is significantly lower than the previous day’s closing price, often due to negative news or strong selling pressure. Gap-downs can indicate strong bearish sentiment and potentially signal the start of a downward trend.
A technical event that occurs when a security’s opening price is significantly higher than the previous day’s closing price, often due to positive news or strong demand. Gap-ups can indicate strong bullish sentiment and potentially signal the start of an upward trend.
An area on a price chart where no trading activity occurred between two consecutive periods, often indicating strong buying or selling pressure.
A government agency that collects and analyses geological data to support mineral exploration and development.
The process of a private company issuing shares of stock to the public for the first time, typically through an initial public offering (IPO).
A bullish technical event in which a security’s short-term moving average, typically the 50-day moving average, crosses above its long-term moving average, typically the 200-day moving average. The Golden Cross is considered a buy signal and may indicate the start of a new uptrend.
An intangible asset that represents the value of a company’s reputation, customer relationships, and other non-physical factors, often acquired during a merger or acquisition.
A debt security issued by a national government, typically offering lower interest rates and higher credit quality due to the backing of the issuing government.
The process of monitoring and adjusting the grade of ore being fed into a processing plant to optimise production and minimise waste.
Gross Domestic Product (GDP)
The total value of all goods and services produced within a country during a specific time period, typically used as a measure of economic growth and performance.
A company’s total revenue minus the cost of goods sold, expressed as a percentage of total revenue.
A stock of a company with a high potential for growth, characterised by strong revenue and earnings growth, and often reinvesting profits back into the business rather than paying dividends.
The physical components of electronic devices, such as microchips, circuit boards, and memory modules.
Head and Shoulders pattern
A chart pattern characterised by a peak (head) between two lower peaks (shoulders), often indicating a potential trend reversal from bullish to bearish.
An investment strategy used to offset potential losses in one asset or investment by taking a position in a related or opposing asset or investment.
A pooled investment vehicle that uses various strategies and instruments, such as leverage, derivatives, and short-selling, to generate high returns for its investors.
High-Frequency Trading (HFT)
A type of algorithmic trading that uses powerful computers to execute a large number of orders at extremely fast speeds, often measured in microseconds or milliseconds.
A corporation that owns a controlling interest in one or more subsidiary companies, but does not engage in the operations of the subsidiaries.
A business strategy in which a company acquires or merges with other companies in the same industry to expand its market share, product offerings, or geographical reach.
An unsolicited attempt to acquire a controlling interest in a company by purchasing a majority of its shares, often against the wishes of the target company’s management and board of directors.
A financial instrument that combines the characteristics of both debt securities (such as bonds) and equity securities (such as stocks), often offering regular interest payments and potential capital appreciation.
An extremely high and typically accelerating rate of inflation, often resulting in the rapid erosion of the purchasing power of a currency and causing economic instability.
A comprehensive technical analysis indicator that combines multiple lines to create a “cloud” on the price chart, used to identify trends, support and resistance levels, and potential buy and sell signals.
A financial statement that summarises a company’s revenues, expenses, and net income over a specific period, typically a quarter or a year.
A type of mutual fund or exchange-traded fund designed to track the performance of a specific market index by holding a portfolio of the same assets and in the same proportions as the index.
Information Technology (IT)
The use of computer technology to process, store, and transmit information.
Initial Public Offering (IPO)
The process by which a private company issues shares of stock to the public for the first time, often to raise capital for business expansion.
The illegal practice of trading securities based on non-public information, often involving corporate insiders or individuals with access to confidential information.
An organisation that invests on behalf of its members, such as pension funds, insurance companies, and endowments.
The legal rights that protect the creations of individuals or companies, such as patents, trademarks, and copyrights.
The percentage of a loan amount that a borrower is charged for the use of money, typically expressed as an annual rate.
Internet of Things (IoT)
The network of interconnected devices and objects that are embedded with sensors and software, and are capable of collecting and exchanging data.
Online platforms and services that allow users to connect, share, and exchange information and content.
A financial institution that assists corporations, governments, and other entities with raising capital, mergers and acquisitions, and other financial transactions.
A credit rating assigned to a bond or other debt security that indicates a relatively low risk of default, typically resulting in lower interest rates for the borrower.
A chart pattern that occurs when a security’s price forms a gap-up followed by a gap-down, or vice versa, with a small “island” of trading activity isolated between the gaps. Island reversals are considered a strong reversal signal, indicating a potential change in market direction.
A graphical representation of the relationship between time and the return on an investment, often used to illustrate the initial loss followed by the eventual gain in a private equity investment or currency devaluation.
Japanese Candlestick Chart
A type of financial chart that visually represents the price movement of a security by displaying the open, high, low, and closing prices for a specific period using various patterns.
A weekly report that measures the number of people filing for unemployment benefits, often used as an economic indicator to assess the health of the labour market.
A business arrangement in which two or more parties agree to pool their resources and share ownership, risks, and profits for a specific project or business.
A term used to describe an individual or entity that has insufficient assets to satisfy a monetary judgment if a lawsuit is filed against them.
A debt security that has a lower priority for repayment than other debt securities in the event of the issuer’s default or bankruptcy.
A high-yield, high-risk bond with a low credit rating, typically issued by companies with a higher likelihood of default.
Just-In-Time (JIT) Inventory
A supply chain management strategy that aims to minimise inventory levels by ordering and receiving goods only when needed for production or sales.
A volatility-based indicator that measures a security’s price movements using an exponential moving average and the Average True Range, used to identify overbought and oversold conditions.
Key Performance Indicator (KPI)
A measurable value that demonstrates how effectively a company is achieving its key business objectives, used to evaluate and monitor progress.
An additional feature of a debt security or financial instrument that provides the holder with increased returns, often in the form of additional interest, dividends, or options.
An option that automatically terminates if the underlying asset’s price reaches a specified level, known as the knock-out barrier.
A long-term economic cycle, also known as a super-cycle, characterised by periods of high and low growth, driven by technological innovations and lasting approximately 40-60 years.
A statistical measure that describes the shape of a probability distribution, often used to assess the risk of an investment based on the distribution of its returns.
A term used to describe companies with a large market capitalisation, typically indicating a higher level of stability and lower risk compared to smaller companies.
The use of borrowed funds to increase the potential return on an investment or to expand a company’s assets and operations.
LIBOR (London Interbank Offered Rate)
A benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.
An order to buy or sell a security at a specific price or better, which may not be executed if the market price does not reach the specified limit.
The ease with which an asset or security can be bought or sold in the market without affecting its price, often related to the asset’s trading volume and the number of buyers and sellers.
Loan-to-Value Ratio (LTV)
A financial ratio used by lenders to assess the risk of a loan by comparing the amount of the loan to the value of the collateral.
A predetermined period of time following an initial public offering (IPO) during which major shareholders, such as company executives and early investors, are prohibited from selling their shares.
The ownership of an asset or security, with the expectation that its value will increase over time.
The use of borrowed funds to purchase securities, with the expectation that the profits from the investment will exceed the cost of borrowing.
A technical analysis concept that measures the overall health of the market by comparing the number of advancing securities to declining securities. Market breadth indicators, such as the Advance/Decline Line, can help traders identify potential trend reversals or confirm the strength of a prevailing trend.
The total value of a company’s outstanding shares of stock, calculated by multiplying the stock’s current market price by the total number of outstanding shares.
A temporary decline in the price of a stock or the overall share market, typically by at least 10% from its recent peak, often considered a natural and healthy part of a bull market cycle.
A statistical measure of the performance of a group of stocks, typically representing a specific sector or region of the market.
A brokerage or dealer firm that stands ready to buy or sell a specific security at a publicly quoted price, providing liquidity to the market.
An order to buy or sell a security at the current market price, which is typically executed immediately.
An investment strategy that attempts to buy and sell securities based on predictions of future price movements, often using technical or economic indicators.
The date on which a debt security, such as a bond or note, becomes due for repayment, and the issuer is obligated to repay the principal amount to the bondholders.
The science and technology of extracting metals from their ores and refining them for use in various applications.
A term used to describe companies with a small market capitalisation, usually between $50 million and $300 million, often involving higher risk and potential for significant price fluctuations.
Mid-cap refers to companies with a market capitalisation between $2 billion and $10 billion in the US, smaller in other markets, indicating a larger size than small-caps but smaller than large-caps, and often with a balance of growth potential and financial stability.
The part of the oil and gas industry that involves the transportation, storage, and processing of crude oil and natural gas.
The process of searching for mineral deposits using various geological and geophysical techniques, such as drilling, mapping, and sampling.
The portion of a mineral resource that can be economically extracted using current technology and market conditions. It is the highest confidence estimate and often a required prior to a decision to mine.
The quantity and quality of mineral deposits that can be economically extracted using current technology and market conditions.
The ownership or leasehold interest in mineral deposits that are located beneath the surface of the earth.
The process by which minerals are deposited in rocks or other geological formations.
The study of the chemical and physical properties of minerals.
The process of extracting minerals from the earth using various methods, such as underground mining, open-pit mining, and strip mining.
An investment strategy that involves buying securities with strong recent price increases and selling securities with poor recent performance, based on the belief that price trends will continue.
Mergers and Acquisitions (M&A): The process of combining or acquiring other companies, often to achieve growth, enter new markets, or gain access to new technologies and resources.
A technical analysis indicator that measures the amount of money entering and exiting a security over a specified period. It is calculated by multiplying the average price of a security by its volume and then accumulating the result over the chosen period. A rising money flow indicates increased buying pressure and a potentially bullish trend, while a falling money flow suggests increased selling pressure and a potentially bearish trend.
Money Market Fund
A type of mutual fund that invests in short-term, high-quality debt securities, such as Treasury bills and commercial paper, often considered a low-risk investment with relatively stable returns.
A technical analysis tool that calculates the average price of a security over a specified period, often used to identify price trends and potential support and resistance levels.
Moving Average Convergence Divergence (MACD)
A trend-following momentum indicator that shows the relationship between two moving averages of a security’s price, used to generate buy and sell signals.
A type of investment vehicle that pools money from many investors to buy a diversified portfolio of securities, such as stocks, bonds, or other assets.
The practice of selling an option without owning the underlying security or a related security to offset the risk, often involving higher risk and potential for unlimited losses.
The National Association of Securities Dealers Automated Quotations, an electronic stock exchange that primarily lists technology and internet-based companies.
A gaseous fossil fuel that is primarily composed of methane and is used as a source of energy for heating, cooking, and electricity generation.
Natural Gas Liquids (NGLs)
Hydrocarbons that are found in natural gas and are separated from the gas during processing. NGLs include ethane, propane, butane, and pentane.
Net Asset Value (NAV)
The total value of a mutual fund’s or exchange-traded fund’s (ETF) assets minus its liabilities, divided by the number of outstanding shares, often used to determine the per-share value of the fund.
A company’s total revenue minus its expenses, taxes, and costs, representing the company’s profit over a specific period.
New Molecular Entity (NME)
A drug that contains an active ingredient that has never been approved by the FDA before. NMEs are often the result of significant research and development efforts and can be a major source of revenue for a company.
New York Stock Exchange (NYSE)
A major stock exchange located in New York City, known for listing many large, established companies and serving as a global marketplace for buying and selling stocks.
A mutual fund that does not charge a sales commission or load fee when purchasing or selling shares, often resulting in lower costs for investors.
The face value of a financial instrument, such as a bond or stock, as stated by the issuer, not reflecting changes in market value or inflation.
Non-Performing Loan (NPL)
A loan in which the borrower has not made the required interest or principal payments for a specified period, often indicating a higher risk of default.
NSX stands for the National Stock Exchange of Australia, which is a licenced securities exchange in Australia.
The use of a drug to treat a condition or disease that is not approved by the FDA. Off-label use is legal, but can be controversial and carries potential risks for patients
The price at which a seller is willing to sell a security, also known as the ask price.
A structure used for drilling oil wells, typically consisting of a derrick, a drilling rig, and various pieces of equipment.
A type of unconventional oil deposit that consists of a mixture of sand, water, clay, and bitumen. Oil sands are typically extracted using open-pit mining or in-situ methods.
Companies that provide various services to the oil and gas industry, such as drilling, well completion, and production enhancement.
On-Balance Volume (OBV)
A momentum indicator that relates price and volume changes to measure buying and selling pressure, used to confirm price trends.
OPEC (Organisation of the Petroleum Exporting Countries)
A cartel of oil-producing countries that work together to control the production and pricing of oil on the global market.
The total number of outstanding options or futures contracts that have not been closed, exercised, or expired, often used as an indicator of market activity.
A company’s profit generated from its normal business operations, excluding non-operating income, expenses, and taxes.
A profitability ratio calculated by dividing a company’s operating income by its net sales, often used to assess the efficiency of a company’s management and its ability to generate profits from its operations.
A financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specific time period.
A naturally occurring mineral deposit that can be mined and processed to extract one or more valuable metals or minerals.
Medications that are developed to treat rare diseases or conditions that affect fewer than 200,000 people in the United States. Orphan drugs are often eligible for special tax incentives and extended periods of patent protection.
A technical analysis tool that measures the strength, speed, or direction of a security’s price movement, typically expressed as a value within a defined range. Oscillators like RSI and Stochastic Oscillator are used to identify overbought and oversold conditions, potential trend reversals, and divergences with price.
The total number of shares of a company’s stock that are currently owned by all its shareholders, including institutional investors, insiders, and the public.
Over-the-Counter (OTC) Market
A decentralised market where securities are traded directly between buyers and sellers, often through a network of dealers, rather than on a centralised exchange.
Over-the-Counter (OTC) Medicines
Medication that you can purchase from pharmacies without a prescription.
A condition in which a security’s price has risen sharply and excessively, often due to speculative buying. Technical indicators like RSI and Stochastic Oscillator can identify overbought conditions, which may signal a potential price reversal or selling opportunity.
A technical analysis term that describes a situation in which the price of a security has risen to a level considered unsustainable, often followed by a decline in price.
A condition in which a security’s price has declined sharply and excessively, often due to panic selling. Technical indicators like RSI and Stochastic Oscillator can identify oversold conditions, which may signal a potential price reversal or buying opportunity.
A trend-following indicator that plots a series of dots either above or below a security’s price, used to identify potential trend reversals and stop-loss points.
A legal protection granted to inventors of new drugs or treatments that gives them exclusive rights to produce and market the product for a certain period of time.
A continuation chart pattern characterised by a small symmetrical triangle that forms after a strong price movement, signalling a brief period of consolidation before the trend resumes in the direction of the previous move.
Phase I, II, III Clinical Trials
The three phases of clinical trials that are typically conducted before a new drug can be approved for use by the FDA. Each phase involves testing the drug on increasingly larger groups of people to assess its safety and effectiveness.
A company’s portfolio of drugs and treatments that are currently in development. The pipeline is often a key indicator of a company’s future growth prospects.
A technical analysis tool used to identify potential intraday support and resistance levels based on the previous trading day’s high, low, and closing prices.
A collection of investments held by an individual or institution, typically including various asset classes such as stocks, bonds, and cash equivalents.
A type of equity security that represents ownership in a company and pays a fixed dividend, but has a higher claim on the company’s assets and earnings than common stock.
A chart pattern formed by parallel support and resistance trendlines that represent the upper and lower bounds of a security’s price movement. Price channels can be used to identify trading opportunities within a trend and potential breakouts or breakdowns.
An estimated future price level for a security, often derived from technical or fundamental analysis. Price targets help traders set realistic profit expectations and manage risk by identifying potential exit points for a trade.
Price-to-Book (P/B) Ratio
A valuation ratio calculated by dividing a company’s market capitalisation by its book value, often used to compare the market value of a company to its net asset value.
Price-to-Earnings (P/E) Ratio
A valuation ratio calculated by dividing a company’s current stock price by its earnings per share, often used to determine if a stock is overvalued or undervalued relative to its peers.
Price-to-Sales (P/S) Ratio
A valuation ratio calculated by dividing a company’s market capitalisation by its revenue, often used to compare the relative value of companies within the same industry.
A profitability ratio that measures the amount of net income generated for each dollar of revenue, calculated by dividing net income by revenue.
A mineral deposit that has been identified through preliminary exploration but has not yet been proven to be economically viable.
The process of selling shares of a company’s stock to the public, often through an initial public offering (IPO) or a secondary offering.
A financial contract that gives the holder the right, but not the obligation, to sell an underlying asset at a specified price within a specific time period.
Quantitative Easing (QE)
A monetary policy used by central banks to stimulate economic growth by purchasing large amounts of government bonds and other financial assets, thereby increasing the money supply and lowering interest rates.
Quarterly Earnings Report
A financial statement issued by a publicly traded company every three months, providing information on its revenue, expenses, and net income, as well as updates on its operations and future outlook.
A financial metric that measures a company’s ability to pay its short-term liabilities using its most liquid assets, calculated by subtracting inventories from current assets and dividing the result by current liabilities.
A period of time before and after a company’s initial public offering (IPO) during which it must limit its communications with the public to avoid influencing its stock price.
The second currency in a currency pair in foreign exchange trading, representing the amount of the quote currency required to buy one unit of the base currency.
The most recent price at which a security was traded, often used as an indication of its current market value.
A company that assesses the creditworthiness of issuers of debt securities, such as bonds, by assigning a credit rating based on their financial strength, credit history, and the likelihood of default.
A period of negative economic growth lasting for at least two consecutive quarters, often characterised by high unemployment, reduced consumer spending, and business contraction.
The process of restoring a mining site to its original state or to a condition that is safe and environmentally sound.
A consolidation chart pattern characterised by a security’s price oscillating between horizontal support and resistance levels, indicating indecision in the market.
The process of an investor returning shares of a mutual fund or other investment to the issuer, often in exchange for cash, at the net asset value of the shares.
A facility that processes crude oil into various petroleum products, such as gasoline, diesel, and jet fuel.
The risk that an investor will be unable to reinvest cash flows, such as interest or dividend payments, at a rate comparable to their current investment, often due to changes in market interest rates.
Relative Strength Index (RSI)
A technical analysis indicator that measures the speed and change of price movements, ranging from 0 to 100, used to identify overbought or oversold conditions.
A report that estimates the size and value of a mineral deposit, based on geological data and economic assumptions.
The amount of oil or gas that is estimated to be recoverable from a given reservoir using current technology and economic conditions.
A price level at which a stock has consistently stopped rising and begun to fall, suggesting strong selling pressure at that price.
Return on Equity (ROE)
A financial ratio that measures a company’s profitability by comparing its net income to its shareholders’ equity, often used to assess the efficiency of a company’s management in generating profits for its shareholders.
Return on Investment (ROI)
A performance measure used to evaluate the efficiency of an investment or compare the efficiency of multiple investments, calculated by dividing the profit or loss from the investment by the initial investment amount.
The total amount of money a company receives from its business activities, such as sales of goods and services, before deducting any expenses.
Reverse Stock Split
A corporate action in which a company reduces the number of its outstanding shares by consolidating them into fewer shares, often used to increase the stock’s market price and attract new investors.
A corporate event in which a company offers its existing shareholders the opportunity to buy additional shares at a discounted price, often used to raise new capital.
The process of identifying, assessing, and prioritising potential risks, followed by taking actions to minimise or mitigate their impact on a company’s or an individual’s financial objectives.
A measure of an investment’s return relative to the level of risk it carries, often used to compare the performance of different investments with varying levels of risk.
A bullish chart pattern characterised by a gradual, rounded low point, signalling a potential reversal from a downtrend to an uptrend.
A payment made to the owner of mineral rights or oil and gas reserves in exchange for the right to extract and sell the minerals/resources.
Russell 2000 Index
A stock market index that measures the performance of the 2,000 smallest publicly traded companies in the US, often used as a benchmark for small cap stocks.
A group of companies that operate in a similar industry or provide related products or services, often used for comparison and analysis purposes.
A type of debt that is backed by collateral, such as property or other assets, which can be seized by the lender in the event of default.
Securities and Exchange Commission (SEC)
A US government agency responsible for regulating the securities industry, protecting investors, and maintaining fair and efficient markets.
Electronic components that are used to make microchips and other electronic devices.
Natural gas that is extracted from shale rock formations using hydraulic fracturing (fracking) techniques.
A corporate action in which a company repurchases its own shares from the open market, often with the intention of reducing the number of outstanding shares and increasing the stock’s value.
The total number of shares of a stock that have been sold short by investors, often used as a sentiment indicator to gauge the level of bearishness in the market.
The practice of borrowing shares of a stock and selling them, with the expectation that the stock price will decline, allowing the investor to buy back the shares at a lower price and profit from the difference.
An investment that is expected to be held for a relatively short period, typically less than one year, often involving higher levels of risk and potential for short-term gains.
Small-cap refers to companies with a market capitalisation under $2 billion in the US or under $300 million in Australia, indicating a smaller size and potentially greater growth potential.
Programs and applications that run on computer systems and other electronic devices.
The practice of buying or selling securities based on the expectation of future price movements, often involving a higher degree of risk and potential for significant gains or losses.
Standard & Poor's 500 Index (S&P 500)
A stock market index that measures the performance of 500 large publicly traded companies in the US, often used as a benchmark for the overall stock market.
A momentum indicator that compares a security’s closing price to its price range over a specified period, used to identify overbought or oversold conditions.
A type of investment that represents ownership in a company and entitles the shareholder to a portion of the company’s assets and earnings.
A marketplace where stocks, bonds, and other securities are bought and sold, often through a centralised trading platform and regulated by governing bodies.
A statistical measure that tracks the performance of a group of stocks, often used as a benchmark for evaluating the performance of individual stocks or investment portfolios.
A corporate action in which a company increases the number of its outstanding shares by issuing additional shares to its shareholders, often used to make the stock more accessible to a wider range of investors.
A quantity of mineral ore that has been mined and is waiting to be processed or shipped.
An order placed with a broker to buy or sell a security when it reaches a certain price, often used to limit potential losses or lock in gains on an investment.
A type of debt that has a lower priority for repayment than other debts in the event of a company’s bankruptcy, often carrying higher interest rates to compensate for the increased risk.
A price level at which a stock has consistently stopped falling and begun to rise, suggesting strong demand at that price.
A trading strategy in which a trader aims to capture short- to medium-term gains in a security by holding positions for several days to several weeks. Swing traders typically use a combination of technical and fundamental analysis to identify price trends and potential entry and exit points.
The risk associated with the overall market or economy, which cannot be eliminated through diversification, also known as market risk.
The waste material that is left over after minerals have been extracted from ore.
The acquisition of one company by another, typically involving the purchase of a controlling interest in the target company’s shares, often resulting in the target company becoming a subsidiary or a division of the acquiring company.
A type of mutual fund that adjusts its asset allocation over time to become more conservative as the investor approaches a specific target date, such as retirement.
A type of debt security issued by a government or municipality that pays interest exempt from federal and, in some cases, state and local income taxes, often used to finance public projects and infrastructure.
The practice of selling an investment that has experienced a loss to offset taxable gains from other investments, potentially reducing an investor’s overall tax liability.
The sector of the economy that includes companies involved in the development, production, and distribution of technology products and services.
A method of evaluating securities by analysing historical price and volume data, often using chart patterns and indicators to predict future price movements.
A corporate action in which an investor or company offers to purchase a large number of shares from existing shareholders at a specified price, often used to gain control of a company.
A unique series of letters assigned to a security for trading purposes, such as stock, bond, or mutual fund.
A monetary policy action by a central bank to decrease the money supply and raise interest rates, often implemented to control inflation or stabilise a currency.
The length of time an investor plans to hold an investment before selling it, often affecting the level of risk and potential return an investor is willing to accept.
Time Value of Money
The concept that a dollar received today is worth more than a dollar received in the future, due to its potential to earn interest or be invested.
An investment approach that begins with an assessment of the overall economic and market environment, followed by an analysis of specific sectors, industries, and individual securities.
The sum of all the assets owned by a company or individual, including cash, investments, property, and other items of value.
Total Expense Ratio
A measure of the total costs associated with managing and operating an investment fund, such as a mutual fund or ETF, expressed as a percentage of the fund’s average net assets.
The actual rate of return on an investment, including capital gains, dividends, or interest, as well as any fees and taxes.
The difference between the performance of an investment portfolio or fund and its benchmark index, often used to evaluate the skill of a portfolio manager.
A temporary suspension of trading in a security or market, often imposed by a stock exchange or regulatory authority due to the release of significant news or the occurrence of unusual trading activity.
The range between the highest and lowest prices at which a security has traded during a specific period.
The number of shares or contracts traded in a security or market during a specific period, often used as an indicator of liquidity and market activity.
A dynamic stop-loss order that moves with a security’s price, locking in profits as the price moves in a favourable direction but triggering a sale if the price falls by a specified amount or percentage from its highest point. Trailing stops help traders protect gains while allowing for potential price appreciation.
A short-term debt security issued by the US Government, typically with a maturity of one year or less, often considered a low-risk investment.
A long-term debt security issued by the US Government, typically with a maturity of 10 years or more, backed by the full faith and credit of the US Government.
A medium-term debt security issued by the US Government, typically with a maturity of two-to-10 years, backed by the full faith and credit of the US Government.
A point at which a prevailing market trend loses momentum and begins to reverse, often marked by a decline in trading volume or a series of failed price breakouts or breakdowns. Trend exhaustion can signal the end of a bull or bear market and the start of a new market cycle.
Lines drawn on a price chart to identify the direction of the market trend, either upwards, downwards, or sideways.
A bullish reversal chart pattern that occurs when a security’s price reaches a similar low three times before reversing direction, indicating a strong support level.
A bearish reversal chart pattern that occurs when a security’s price reaches a similar high three times before reversing direction, indicating a strong resistance level.
A quarterly event in the stock market during which stock options, index options, and index futures contracts all expire on the same day, often leading to increased volatility and trading volume.
A measure of a mutual fund’s trading activity, calculated by dividing the total amount of a fund’s annual sales or purchases by its average net assets.
An investment strategy that involves allocating assets between only two investment funds, typically a stock index fund and a bond index fund, aiming to achieve diversification and balance risk and return.
A term used to describe a security that is believed to be trading below its intrinsic value, often due to factors such as market sentiment, mispricing, or temporary market conditions.
A financial institution, such as an investment bank, that helps companies issue new securities, such as stocks or bonds, by purchasing the securities and reselling them to investors.
The percentage of the labour force that is actively seeking employment but is unable to find a job, often used as an indicator of the overall health of an economy.
Unit Investment Trust (UIT)
A type of investment fund that holds a fixed portfolio of securities, typically stocks or bonds, and issues units to investors, often with a defined maturity date.
The risk associated with an individual investment or company, which can be reduced or eliminated through diversification, also known as specific risk or idiosyncratic risk.
The part of the oil and gas industry that involves the exploration and production of oil and gas reserves.
A series of higher highs and higher lows in a security’s price, often indicating a bullish market sentiment and potential future price gains.
A type of economic recovery characterised by a steep decline in economic activity followed by a rapid and strong rebound.
The process of determining the fair value of a company, security, or asset based on various financial and economic factors.
An investment strategy that focuses on buying stocks that are undervalued by the market, with the belief that they will eventually rise in price to reflect their true value.
A stock that is considered to be undervalued by the market based on its fundamentals, such as earnings, dividends, and book value.
A mutual fund company known for its low-cost index funds that track the performance of major stock and bond indexes.
A type of private equity investment that provides funding to early-stage companies with high growth potential, often in exchange for equity in the company.
An options trading strategy that involves buying and selling two options of the same type (calls or puts) with different strike prices, but the same expiration date. The strategy can be used to either profit from a directional move in the underlying security, or to hedge against potential losses.
VIX (Volatility Index)
A measure of the market’s expectation of future volatility, commonly referred to as the “fear index”. The VIX is calculated based on the prices of options on the S&P 500 index.
A measure of how much the price of a security or market index fluctuates over time. High volatility indicates greater uncertainty and risk, while low volatility suggests more stability.
The number of shares of a security that are traded in a given period of time, such as a day or a week. High volume suggests greater investor interest and liquidity in a security.
Volume-weighted Average Price (VWAP)
A trading benchmark that calculates the average price of a security weighted by volume, used to identify potential entry and exit points.
A street in lower Manhattan that is home to the New York Stock Exchange (NYSE) and many other financial institutions. The term “Wall Street” is often used to refer to the financial industry as a whole.
A transaction in which an investor sells a security at a loss and then immediately buys it back, in an attempt to realise a tax benefit by offsetting gains with losses.
Investors who have purchased a security, such as a stock, with the expectation that it will rise in value, but who are easily shaken out of their position by even small price declines.
A type of average that takes into account the relative importance, or weight, of each data point. In finance, a weighted average may be used to calculate the performance of a portfolio or index, or to determine the average cost of a security held over time.
A sudden and sharp reversal in the price of a security, often following a period of consolidation or indecision. Whipsaw movements can be difficult to predict and can result in significant losses for traders.
A friendly acquirer who steps in to save a company from a hostile takeover attempt by making a counteroffer that is more favourable to the target company and its shareholders.
Wild Card Play
An investment strategy that involves taking a risk on a highly uncertain or speculative security, with the hope of achieving a large return.
Wilshire 5000 Total Market Index
A market capitalisation-weighted index that tracks the performance of all publicly traded companies in the United States, including small-cap, mid-cap, and large-cap stocks.
A practice by which fund managers make changes to their portfolios, often at the end of a quarter or year, in order to improve the appearance of their holdings and performance.
A reduction in the value of an asset, such as an investment or loan, that is recognised as a loss on a company’s financial statements. Write-offs can be used to reduce a company’s taxable income and improve its financial position.
A symbol used on financial quotes and stock tickers to represent an ex-dividend date. When a stock is marked with an “X” before its ticker symbol, it signifies that the stock is trading ex-dividend, meaning that it no longer carries the right to the most recently declared dividend payment. Investors who purchase shares of the stock after the ex-dividend date will not receive the upcoming dividend, while those who owned the shares prior to the ex-dividend date will receive the dividend payment.
A comparison of a company’s financial performance in the current year with the same period in the previous year. YOY comparisons can be used to measure a company’s growth or decline over time.
A daily publication that provides pricing and other information on over-the-counter (OTC) stocks that do not trade on major exchanges. The Yellow Sheets are published by the National Quotation Bureau.
The income generated by an investment, typically expressed as a percentage of the investment’s cost or current market value. Yield can refer to various types of income, such as dividends, interest, or capital gains.
A graph that plots the yields of bonds with different maturities, typically from short-term to long-term. The shape of the yield curve can provide information about the market’s expectations for interest rates and economic growth.
A revenue optimisation strategy used by businesses to maximise their profits by adjusting prices based on supply and demand. Yield management is commonly used in the hospitality and transportation industries.
A technical analysis chart pattern that indicates a potential trend reversal in a security. The pattern consists of two converging trend lines that form a triangle shape, with the upper trend line acting as resistance and the lower trend line acting as support.
The difference between the yields of two bonds or securities with similar maturities, typically expressed in basis points. Yield spreads can be used to compare the credit risk or relative value of different securities.
Yield to Maturity
The total return anticipated on a bond if it is held until its maturity date and all interest payments are reinvested at the same rate.
A publicly traded company that owns and operates renewable energy assets, such as wind farms or solar power plants. Yieldcos are known for their high dividend payouts, which are supported by stable cash flows from long-term power purchase agreements.
A type of bond that is backed by zero-coupon bonds. Z bonds are created by stripping the cash flows from a portfolio of zero-coupon bonds and then recombining them into a new bond.
Zacks Investment Research
An investment research firm that provides analysis and recommendations on publicly traded stocks. Zacks is known for its proprietary rating system, which ranks stocks on a scale from 1 (Strong Buy) to 5 (Strong Sell).
A bond that pays no periodic interest, but is issued at a discount to its face value and redeemed at its full face value at maturity. Zero-coupon bonds are popular among investors who seek to lock in a fixed rate of return over a long period of time.
A situation in which one participant’s gain is exactly offset by another participant’s loss. In financial markets, trading is often seen as a zero-sum game, as gains made by one trader are offset by losses incurred by other traders.
A technical analysis chart pattern that indicates a trend reversal in a security. The pattern consists of a series of alternating peaks and valleys, with each peak or valley lower than the one before it in a downtrend or higher than the one before it in an uptrend.
Regulations that govern the use of land in a specific area, such as a city or municipality. Zoning laws can restrict or permit various types of land use, such as residential, commercial, or industrial.